Fadi Ibrahim, a central member of the Kings Cross nightclub family, has avoided prison for an act of “familial generosity” after his underworld brother, Michael, repaid a loan with $600,000 sourced from a black market tobacco deal.
Fadi, the younger brother of nightclub boss John Ibrahim, faced the Downing Centre District Court on Friday, seven years after he was arrested in Dubai alongside Michael in a multi-agency sting on crime syndicates.
Michael, 46, and a slew of other organised crime figures are now spending decades in prison for varying roles in a series of MDMA and tobacco imports from the Netherlands which had been compromised by undercover officers.
There is no suggestion John Ibrahim was involved in any illegal activity or wrongdoing, or that Fadi was involved in any of his brother’s underworld deals.
Fadi pleaded guilty only to handling money reasonably suspected to be the proceeds of crime after Michael repaid $600,000 of an $800,000 loan.
The repayments had been sourced from one of Michael’s tobacco dealings, without Fadi’s knowledge, Judge Christopher O’Brien said on Friday.
“[Fadi] advanced the $800,000 to Michael to help him get on his feet after his release from prison,” Judge O’Brien said.
“This offender was not in any way part of [Michael’s] criminal syndicate nor was he aware of the serious criminal activity which Michael was involved.”